mining global magazine - may 2016
DESCRIPTION
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May 2016 www.miningglobal.com
PROJECTS The worlds largest gold mines
FINANCE Top mining companies on the Toronto Stock Exchange
TOP 10 MINING COMPANIES
brings mining excellenceto Brazil
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3E D I T O R S C O M M E N TIN TH IS ISSUE
Lucy DixonManaging Editor EMEA
W E L C O M E T O M AY S E D I T I O N of Mining Global. In this issue, we uncover the mining industrys top 10 companies, according to PWCs 2015 Review of Global Mining Trends. Another feature looks at the worlds biggest gold mines, including The Witwatersrand Basin in South Africa, which has produced almost 40 percent of the worlds gold in the last 120 years. We also have a round-up of the top mining companies on the Toronto Stock Exchange, which presents alternative opportunities for people seeking to invest - the World Federation of Exchanges ranks the TSX as the eighth largest in the world based on its total market capitalisation of $2.2 trillion in 2014. We hope you enjoy the issue let us know your feedback @MiningGlobal
Mining trends
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FINANCE Top mining companies on the Toronto Stock Exchange
TOP10 mining companies: The fight for survival
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6PROJECTS
The worlds largest gold mines
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CONTENTS
Features
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Company Profiles
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56
74 92MACA
Civmec
Coeur Mining LATAM Soletanche Bachy Chile
AUSTRALIA
AUSTRALIA
LATIN AMERICALATIN AMERICA
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Gold is finding a delicate footing on the stock market, but it is not out of the woods yet. We take a look at some of the largest, most stable gold mines in operation, and examine the challenges they face
W ri t t e n b y : Mining Global staff
The worlds largest
PROJECTS
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MINE: THE WITWATERSRAND BASIN According to National Geographic Magazine, almost 40 percent of the worlds
gold for the last 120 years was mined at the Witwatersrand Basin in South
Africa. The mine has gold deposits dating back roughly 3 billion years.
Pennsylvania State University states that the mine
produced almost 1,000 tons of gold during
the 1960s, but the levels of gold
production have declined over time.
Still, in recent years, the gold
mine in South Africa produces
roughly 320 tons of gold.
AngloGold Ashanti Ltd.
uses machinery to produce
gold in South Africa to
reduce the potential
dangers. In addition to
increasing safety, advances
in mining machinery
helps to reduce delays
in production throughout
the region, according to
the Wall Street Journal.
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MAKING DECISIONS ABOUT company or personal investments requires appropriate levels of research. When selecting investments in gold or gold mines, professionals want to work with not only the largest companies, but also with the most productive mines. These productive mines bode well for potential profits in the future. The following is a list of some of the cream of the mining crop.
PROJECTS
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9G O L D M I N E S
MINE: THE GREAT MINES OF CHINA China is one of the largest producers of gold in the world, but the gold
comes from several different mines throughout the country. The World Gold
Council suggests that roughly 460 tons of gold comes from China alone.
Zijin Mining is one of the largest mining companies in China for gold and
other metals. The company mines almost 175 tons of gold each year.
The company primarily mines metals in China, although it also engages
in international mining operations. While the growth may be slow and
gradual, China will see an increase in the gold mining industry by 2018.
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MINE: GRASBERG MINE The Grasberg Mine in Indonesia is considered the worlds largest gold mine. According to
Reuters, the gold deposits in the mine are estimated to value roughly $16.2 billion.
The company with the most investment and mining operations in the area is Freeport-McMoRan
Inc. Due to changing licensing agreements and the expiration of a previous agreement with the local
government in Indonesia, the company is renegotiating its options for future mining operations.
While the mine is expected to show lower than average production, negotiations suggest that the
company will see positive changes in the future. A key factor impacting the companys profitability is the
demands of the Indonesian government. The government expects to own almost 20 percent of Freeport-
McMoRan Indonesia by the end of the year and has demands for 30 percent ownership by 2019. As a
result, a portion of the companys profits will return to the country for mining rights and licensing.
PROJECTS
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MINE: GRASBERG MINE The Grasberg Mine in Indonesia is considered the worlds largest gold mine. According to
Reuters, the gold deposits in the mine are estimated to value roughly $16.2 billion.
The company with the most investment and mining operations in the area is Freeport-McMoRan
Inc. Due to changing licensing agreements and the expiration of a previous agreement with the local
government in Indonesia, the company is renegotiating its options for future mining operations.
While the mine is expected to show lower than average production, negotiations suggest that the
company will see positive changes in the future. A key factor impacting the companys profitability is the
demands of the Indonesian government. The government expects to own almost 20 percent of Freeport-
McMoRan Indonesia by the end of the year and has demands for 30 percent ownership by 2019. As a
result, a portion of the companys profits will return to the country for mining rights and licensing.
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G O L D M I N E S
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MINE: PUEBLO VIEJO GOLD MINEThe Pueblo Viejo mine in the
Dominican Republic is one of
the largest mines for gold in the
world. The mine is owned by two
companies: Goldcorp and Barrick
Gold Corporation. Goldcorp owns
roughly 40 percent of the mine,
while Barrick Gold Corporation
owns the remaining 60 percent.
The amount of gold produced by
the mines results in an estimated
value of roughly $1.3 billion per
year in exports. The mine continues
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PROJECTS
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producing relatively high levels
of gold, but the future of the
mines depend on the possibility
of maintaining workers.
A key problem with the area is
the quality of the water and the
risk to miners. Mining companies
have invested in cleaning efforts
to improve water quality and take
measures to ensure any water
released into the rivers does not
contain dangerous elements. The
water contamination requires
a constant investment that
impacts profitability; however,
the same efforts also increase
the possibility for continued
operations and profits over time.
The largest gold mines in the
world produce tons of gold each
year, but the possibilities for the
future vary significantly based
on the risks and complications.
Safety concerns impact many
of the largest gold mines, while
complications with governmental
authorities and problems with
the quality of the ore impact the
future of the companies. The key
to selecting the right investment
is focusing on the companies
that have the best strategies to
balance safety of the mines with
managing high productivity.
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G O L D M I N E S
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39 F INANCE
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Top mining companies on the Toronto Stock
Exchange If you are looking to invest in a mining company, the Toronto Stock Exchange (TSX) might be the best
place to start
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W ri t t e n b y : Mining Global staff
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BARRICK GOLD CORPORATION
The Toronto-based company made just over $9 billion in revenues in 2015, according toits annual report. Its thelargest gold mining company in the world,with operations on five continents. The annual report lists four mining sites based in the United States: the Goldstrike mine, the Cortez mine and the Turquoise Ridge JV mine, all in Nevada; and the Golden Sunlight mine in Montana. Barrick also has mines in Canada, the Dominican Republic, Peru, Chile, Argentina, Tanzania, Zambia, Saudi Arabia, and Papua New Guinea. Barricks leaders include Executive Chairman John L. Thornton and President Kelvin Dushnisky.
STOCK EXCHANGES OTHER than New Yorks present alternative opportunities for people seeking to invest.The World Federation of Exchanges ranks the TSX as the eighth largest in the world based on its total market capitalisation of $2.2 trillion in 2014.
The number of companies on the TSX has varied over the years. There were more than 1,500 in 2014. In 2016, the two exchanges owned by the TMX Group, the TSX and the TSX Venture Exchange, listed 1,294 companies.
Out of these companies on the two exchanges, 241 are mining companies. According to a TMX report on mining, 53 percent of the financing of the worlds mining companies was done on the two exchanges in 2015.
Standard & Poors keeps track of 60 large companies listed on the Toronto Stock Exchange via its S&P/TSX 60 Index. There are 12 mining companies on this index. In rough order of annual revenues, they are:
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F INANCE
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TECK RESOURCES LIMITED
Based in Vancouver, Teck Resources made $8.3 billion in revenue in 2015, according toits annual report. It has operations in the United States, Canada, Chile, and Peru.Its mines include:the Antamina copper and zinc mine in Peru; the Carmen de Andacollo copper and gold mine and the Quebrada Blanca copper mines both in Chile; the Frontier oil sands mine in Alberta; the Red Dog zinc mine in Alaska; the Pend Oreille zinc and lead mine in Washington state; and several steelmaking coal mines in British Columbia. Thecompanys leadersinclude Chairman of the Board Norman Keevil and President and CEO Donald Lindsay.
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T O P M I N I N G C O M P A N I E S O N T H E T S X
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GOLDCORP INC.
Another Vancouver-based company, Goldcorp made more than $5.1 billion in revenues in 2015, according to itsFinancial Highlights report. The company has mines and projects in Canada, the United States, and Latin America, according toits website. The company projects it will produce hundreds of thousands of ounces of gold from its Canadian gold mines in Eleonore, Porcupine, and Red Lake. It had record production from its gold mine in Penasquito, Mexico in 2015 as well as mines in the Dominican Republic, Argentina, and Guatemala. Thecompanys leaders includePresident and CEO David Garofalo and Executive Vice President Russell Ball.
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F INANCE
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KINROSS GOLD CORPORATION
Headquartered in Toronto, Kinross earned about $3.05 billion in revenues in 2015, according toits 2015 Annual Report. The company has 10 mines in the Americas, West Africa, and Russia, according toits Operations report. Its American mines include the Fort Knox Gold Mine in Alaska, the Buckhorn Gold Mine in the state of Washington, and the Round Mountain Gold Mine in Nevada. Its Paracatu mine is the largest gold mine in Brazil and one of the largest in the world. The corporate leaders of Kinross include President and CEO J. Paul Rollinson and Executive Vice President Tony Giardini.
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T O P M I N I N G C O M P A N I E S O N T H E T S X
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CAMECO CORPORATION
Saskatoon, Saskatchewan-based Cameco was the worlds second largest producer of uranium in 2014, according tothis World Nuclear Association report. Its McArthur River mine in Canada was the worlds largest uranium-producing mine in the world. Two of its other mines, the Inkai mine in Kazakhstan and the Rabbit Lake mine in Canada, are also among the worlds largest producers. Cameco earned roughly $2.75 billion in revenues in 2015, according to the companys2015 Annual Report. Its corporate leaders include Chair of the Board Neil McMillan and CEO Tim Gitzel.
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F INANCE
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06 FIRST QUANTUM MINERALS LTD.The third Vancouver-based company on this list, First Quantum Minerals earned just under $2.7 billion in revenue in 2015, according tothis press releaseabout its 2015 performance. The company boasted that it produced a large amount of copper from its Sentinel mine in Zambia, the Kevitsa mine in Finland, the Las Cruces mine in Spain, and the GuelbMoghrein mine in Mauritania. Some of the companys mines, including the ones mentioned above, also produce gold, nickel, zinc, and cobalt, according to its Operating Mines report. First Quantums leaders include Chairman of the Board and CEO Philip Pascall and President Clive Newall.
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T O P M I N I N G C O M P A N I E S O N T H E T S X
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07 AGNICO EAGLE MINES LIMITEDHeadquartered in Toronto, Agnico Eagle Mines made $1.985 billion in revenue in 2015 from its mining operations, according to this news releaseabout its 2015 performance.Its mines includethe LaRonde, Canadian Malartic, Goldex, and La India gold mines, with the first three in Quebec and the latter in northern Mexico. Agnico also owns the Kittila gold mine in Finland and other gold mines in Canada and Mexico.The companys corporate leadershipincludes Vice Chairman and CEO Sean Boyd and President Ammar Al-Joundi.
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08 YAMANA GOLD INC.Yamana Gold is also based in Toronto. Its 2015 revenue totaled $1.8 billion, basedon the sale of 1,248,401 ounces of gold, 8.9 million ounces of silver, and 126 million pounds of copper, according toits 2015 Annual Report. Its mines include the Chapada gold-copper mine in Brazil, the El Penon gold-silver mine in Chile, and the Canadian Malartic gold mine in Quebec. The companys leaders include Chairman/CEO Peter Marrone and Executive Vice President Charles Main.
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T O P M I N I N G C O M P A N I E S O N T H E T S X
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PWCs Top 10 mining companies:
The fight for survivalResearch based on PwCs 2015 12th annual review of the top trends in the global mining industry www.pwc.com/mining
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According to PWCs 2015 Review of Global Mining Trends, the gloves are off for the big boys in the mining industry. All time low prices, all time high volumes, minimal capital investment, job losses galore going into 2016 there were high expectations set around cost efficiency, improved capital management and, of course, new technology. The big question remains - can they reward their long suffering shareholders?
Mining Global looks at the PWC report and who is leading their fight for survival
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TOP 10
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01 BHP Billiton BHP Billiton is an Anglo-Australian multinational mining, metals and petroleum company headquartered in Melbourne, Australia. It is the worlds largest mining company, measured by 2013 revenues, and Australias largest company.CEO: Andrew Mackenzie Headquarters: Melbourne, Australia Revenue: 61.2 billion AUD (2015)www.bhpbilliton.com
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TOP 10
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02 Rio Tinto Rio Tinto Group is a British-Australian multinational metals and mining corporation with headquarters in London, United Kingdom and a management office in Melbourne, Australia.CEO: Sam Walsh (leaving July 2016) New CEO: Jean-Sebastien Jacques Headquarters: London, United KingdomRevenue: 34.83 billion USD (2015)www.riotinto.com
P W C S T O P 1 0 M I N I N G C O M P A N I E S
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03 China Shenhua Energy Company Ltd. China Shenhua Energy Company Limited is the largest coal mining state-owned enterprise in mainland China, and the largest coal mining enterprise in the world. It is a subsidiary of Shenhua Group.Chairman/CEO: Zhang Yuzhuo Headquarters: Beijing, Chinawww.csec.com
TOP 10
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04 Glencore Glencore plc is an AngloSwiss multinational commodity trading and mining company headquartered in Baar, Switzerland, with its registered office in Saint Helier, Jersey.CEO: Ivan Glasenberg Headquarters: Baar, Switzerland Revenue: 170.5 billion USD (2015)www.glencore.com
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05 Vale S.A. Vale SA is a Brazilian multinational corporation engaged in metals and mining and one of the largest logistics operators in Brazil. Vale is the largest producer of iron ore and nickel in the world.CEO: Murilo Ferreira Headquarters: Rio de Janeiro, Brazil Revenue: 26.05 billion USD (2015)www.vale.com
TOP 10
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06 Coal India Limited Coal India Limited is an Indian state-controlled coal mining company headquartered in Kolkata, West Bengal, India. It is the largest coal producer company in the world and contributes around 82 percent of the coal production in India.CEO: Suthartha Bhattacharya Headquarters: Kolkata, India www.coalindia.in
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07 PotashCorp. of Saskatchewan
PotashCorp is the worlds largest fertiliser company by capacity, producing potash
(K), nitrogen (N) and phosphate (P). With operations and business interests
in seven countries, PotashCorp is an international enterprise and a key
player in helping to feed the world.CEO: Jochen Tilk
Headquarters: Saskatoon, Canada Revenue: 8.03 billion USD (2012)
www.potashcorp.com
TOP 10
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08 Anglo American Anglo American is one of the worlds largest mining companies. Their portfolio spans iron ore and manganese, metallurgical and thermal coal, copper, nickel, niobium and phosphates, platinum and diamonds.CEO: Mark Cutifani Headquarters: London, United Kingdom Revenue: 20.46 billion USD (2015)www.angloamerican.com
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09 Freeport-McMoRan Copper & GoldFreeport-McMoRan is a premier U.S.-based natural resource company with an industry leading global portfolio of mineral assets, significant oil and gas resources and a growing production profile.CEO: Richard Adkerson Headquarters: Phoenix, AZ Revenue: 15.88 billion USD (2015)www.fcx.com
TOP 10
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10 Grupo Mxico Grupo Mxico is the largest mining corporation in Mexico and the third largest copper producer in the world through ASARCO. Ferrocarril Mexicano, the companys rail transport division, operates the nations largest rail fleet.CEO: Germn Larrea Mota-Velasco Headquarters: Mexico City, Mexico Revenue: 10.1 billion USD (2012)www.grupomexico.com
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AMONG THE MACAWSMACA Ltd has recently entered the mining market in South America with great success and is rapidly making itself part of the Brazilian mining ecosystem Written by: John OHanlon | Produced by: Glen White
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MACA are industry leaders throughout Australia known as a competent and established contractor specialising in earthmoving, civil work and specialised crushing and screening work for mining projects. It is widely acknowledged that the mining industry is having a hard time, particularly the Western
Australian iron ore sector. Projects are running at capacity to get as much upside from volumes as possible, but long term prospects remain gloomy.
STRENGTH IN D IVERSE PROJECTSMACAs management, noting current mining market trends,
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MACA
Volvo fleet at Antas
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diversified at the time of the global financial crisis, diversifying across commodities through gold, nickel, iron ore and diamond projects in Western Australia. Its most timely and visionary action was to look abroad; in 2013, it sent a team to Brazil to explore opportunities in the countrys vibrant mining economy.
Our systems and structure
werent in place to venture abroad, said Mitch Wallace, General Manager for MACA Brazil Operations, but we looked closely at the Tucano project for Beadell Resources, an Australian company that had a gold project up in Amap State in the northern region of Brazil. The following year we came over to Brazil in earnest and, in November
A U S T R A L I A
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MACA
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Equipamentos Agrcolas Volvo.
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Fifty years ago the worlds first articulated hauler rolled off the Volvo production line in Bras, Sweden. Fondly known as Gravel Charlie this machine would be the first step on a fifty year journey which has seen Volvo haulers transform earthmoving and transport operations in the construction sector. Fifty years later and the Volvo articulated hauler line up is still leading the way.
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started our first project for Beadell, which was to provide mining services through management and plant rental for Beadell at its Tucano project.
Tucano is an established gold mine that has been producing for Beadell since 2012, and from it, Beadell produced more than 122,000 ounces in 2015. It is a huge project, covering 2,500 square kilometers that hold reserves of 5 million ounces and with expansions highly likely. Convinced that they could make a difference, the MACA team injected capital into the project and set about doing the work they
Dump trucks at Tucano
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Tucano
Resource
Client
Location
Gold
Beadell Resources Limited
Amap State - Brazil
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know best.Though they are on the same
latitude, Brazil and Western Australia are very different environments. The most apparent difference is the weather: very rarely is a WA project held up by rain, whereas North of the Amazon River, annual rainfall is measured in meters as opposed to millimeters, most of it falling between January and May. Generally, service providers simply shut down during these months, but MACA understands that the primary goal of every miner in the world is to move ore, and that for every ton of
ore delivered to the stockpile results in seven or eight tons of waste matter that has to be shifted. It was hard getting things moving last year, said Wallace. One truck with a flat tire sat submerged in mud up to its front bumper for eight weeks. Our focus was to safely establish haul roads and operating systems so we could operate through the wet season.
With Tucano well under way, MACA started its second Brazil contract in November 2015: a five-year deal to support Avanco Resources at its Antas project in the
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Wet season at Tucano site
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state of Par. This is a high grade better than three percent copper project with gold credits. MACA currently has 75 direct employees on site engaged in mining services, plant management and drill and blast activities. At present, this is a surface mine, but MACA plans to diversify in underground mining services and hopefully continue support and grow with its client Avanco.
In both cases, according to Wallace, MACA has chosen to work with a client it already knows well. We like working with small and mid
tier clients because you know the management is not going to change: we can build a strong relationship with them. We are aligning ourselves with the mid tier people and growing with them, he said.
SOURCING LOCAL AS SETSIn all, the company employs around 150 national employees directly and manages as many as 500 across both projects. This is in addition to the 16 expatriates in training and technical advisory roles.
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Turnaround at Tucano commenced. Improved operational efficiency and exploration potential will underpin future growth.
STRONG PARTNERSHIP IN-COUNTRY WITH MINING CONTRACTOR MACA
Level 2, 16 Ord Street, West Perth WA 6005T: +61 8 9429 0800 F: +61 8 9481 3176
Email: [email protected]
Beadell Resources Limited is an ASX listed gold producer with forecast gold production in 2016 of 145,000 160,000 ounces from its 100% owned Tucano mine, North of Brazil.Tucano has an existing multi-million ounce JORC gold resource with significant exploration potential.
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A U S T R A L I AMACA
sustainable employment here in Brazil, and continuously improve mining practices , said Wallace. This will be achieved through continuous improvement, upskilling our workforce and introducing safe and efficient mining practices. One of the prevalent barriers throughout South America is that people are operationally single-tasked. Its our goal to introduce a multi-skilled and diversified workforce. We have identified some quick fixes
and long-term solutions, and will implement programs so that we can keep continuously improving. Brazilian people are passionate and enthusiastic about learning new things, and we have to be able to offer an attractive package to source and retain the best people within the sector.
Working in Brazil and negotiating recruitment, tax and contract law issues is complex, and having a competent local partner is vital.
Turnaround at Tucano commenced. Improved operational efficiency and exploration potential will underpin future growth.
STRONG PARTNERSHIP IN-COUNTRY WITH MINING CONTRACTOR MACA
Level 2, 16 Ord Street, West Perth WA 6005T: +61 8 9429 0800 F: +61 8 9481 3176
Email: [email protected]
Beadell Resources Limited is an ASX listed gold producer with forecast gold production in 2016 of 145,000 160,000 ounces from its 100% owned Tucano mine, North of Brazil.Tucano has an existing multi-million ounce JORC gold resource with significant exploration potential.
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Start of shift - Toolbox meeting in Tucano
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MACA was fortunate in being able to form an association with FFA Legal and its founder Luis Azevedo, a well-respected mining geologist and corporate attorney.
The support FFA has provided MACA has enabled us to focus on what we do best: provide reliable and safe support services to our clients and the broader resource sector. Without the team at FFA, we wouldnt have been as fortunate in experiencing the early success we have seen, said Wallace.
Procurement and best practice asset management is our bread and butter at MACA and my background throughout the last 20-25 years, he added. Operating in Brazil is a completely different ball game
with barriers to entry designed to encourage local manufacturing places and huge restrictions on importation and foreign investment. The majority of large mining equipment needed for mining is not made in Brazil though, and imported goods are extremely expensive. For example, a earthmoving tire is typically 60% more expensive in Brazil than in Australia. Wallace said that the outlook does look promising, however, given that a change in government could create a possibility of changes within Brazil.
Many service providers will try to save and cut costs by sourcing equipment off shore, but Wallace does not agree with that strategy.
A U S T R A L I AMACA
We are proud to have been able to continue these relationships with their South America offices. Companies such as Liebherr and Orica were very quick to assist us with the transition into the new market place, offering us assistance and advice to navigate through the processes to get work done.
Mitch Wallace, General Manager (Brazil Operations)
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CHRIS TUCKWELLManaging Director and Chief Executive Officer B Eng (Construction)
MITCH WALLACEGeneral Manager (Brazil Operations)
GEOFF BAKERExecutive Director of Operations
TIM GOOCH General Manager (Mining)B Eng (Mining)
PETER GILFORDChief Financial Officer / Company SecretaryBCom, CA
MAURICE DESSAUVAGIEGeneral Manager (Civil)B Eng (Civil)
EXECUTIVE MANAGEMENT
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We have always sourced our equipment through OEM suppliers to secure their support. Our relationship with Tracbel and its CEO Luiz Gustavo R. Magalhes Pereira has been unbelievably helpful to us. Without his assistance and support, we would not be where we are today, Wallace said.
Tracbel is a family-owned business, based in Minas Gerais and with 25 branches covering 75 percent of Brazil. Tracbel is a
licensed dealer for many OEMs, including Volvo and Michelin.
MACA has always been proud of its long standing relationships with many companies in Australia. Loyalty, customer services and reputation are often more important than price. We are proud to have been able to continue these relationships with their South America offices, said Wallace. Companies such as Liebherr and Orica were very quick to assist
Mitch Wallace and Geoff Baker with expats at the Antas site
A U S T R A L I AMACA
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COMPANY NAME
contracts department is working on prospects at present, but the company wont overstretch itself at the expense of its existing clients. The two projects in the North take up a lot of time, even for a hands-on company like MACA. Travel around Brazil is challenging and commuting between Rio de Janeirowhere
us with the transition into the new market place, offering us assistance and advice to navigate through the processes to get work done.
A COMPANY W ITH A HEARTThere are plenty of opportunities for expansion in Brazil, and MACAs
First load at Antas site
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COMPANY NAME
problem. MACA is a company with a heart, actively supporting a range of Not-for-Profit organizations and community programs. Wallace manages to find time to contribute to these efforts. The Hawaiian Ride for Youth (HRFY) began in 2003 when a small group of recreational cyclists in Australia decided to raise
Wallaces office is locatedand Amap State is several thousand kilometers and therefore absorbs a lot of valuable time.
Though Wallace spends extended periods away and only gets to see his family back in Australia once every three or four months on average, boredom is never his
A U S T R A L I AMACA
Antas
Resource
Client
Location
Copper
Avanco Resources Limited
Par State - Brazil
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on March 23 to be a part of this amazing event that reaches out to so many young people.
HRFY is held annually in March across five days, with riders covering over 700 kilometers. On our journey, we stop at high schools to engage the students in the issues of youth suicide, depression and self-harm and the services that Youth Focus provides. The riders
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funds for Youth Focus to assist in the prevention of youth suicide, depression and self-harm.
2016 was my fourth HRFY. Though working abroad made training a little difficult, the sacrifice required to ride a few kilometers became insignificant, compared to the suffering many young people face with lifes challenges, Wallace said. I flew back to Australia
MACA
Orica provides market-leading customer solutions to improve productivity and resource efciency in the mining, quarrying, oil and gas and infrastructure sectors. An Australian company with a global footprint, Orica has a diverse workforce of over 14,000 people, with operations in more than 50 countries and customers in more than 100.
OOricas value of No Accidents Today underpins our commitment to the safety, health and wellbeing of our people and customers, the environment, and the communities in which we operate.
orica.comRide to Conquer Cancer
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also share their personal stories and experiences as many have been touched in some way by these very personal issues, he said.
Another bike ride, the MACA Ride to Conquer Cancer 2016 in support of the Harry Perkins Institute of Medical Research, takes place in Perth. Last year 300 MACA riders raised $1.2 million for this cause. This may not seem very relevant to Brazil, but cancer is a global problem, and among others Tracbels Luiz Gustavo Pereira is enthusiastically supporting the event.
Company Information
N A M E
MACA
I N D U S T RY
Mining
H E A D Q U A RT E R S
Welshpool, Western Australia
B R A Z I L
P R O J E C T S
Tucano Resource - Gold Antas Resource - Copper
M I N I N G
S E R V I C E S
Load and Haul
Drill and Blast
Crush and Screen
Materials Handling
A U S T R A L I AMACA
Ride to Conquer Cancer
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AN ATTITUDE OF ACHIEVEMENT
Civmec is a relative newcomer to the Australian resources market but its growth has been unstoppable. Co-founder and CEO Pat Tallon explains
the agile philosophy that is keeping the company ahead in challenging times.
Written by: John OHanlon | Produced by: Glen White
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AN ATTITUDE OF ACHIEVEMENT
Civmec is a relative newcomer to the Australian resources market but its growth has been unstoppable. Co-founder and CEO Pat Tallon explains
the agile philosophy that is keeping the company ahead in challenging times.
Written by: John OHanlon | Produced by: Glen White
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Established late in 2009, Civmec wasted no time in making itself the go-to multi-disciplinary service provider to the Western Australia (WA) contracting market, winning its first contracts to construct two 400T precast intake pump structures for the Binningup Desalination Plant and site civil works in the same year. 2009 also marked the start of construction of its waterfront facilities on the Australian Marine Complex (AMC) at Henderson south of Perth.
Today, Henderson is the largest undercover fabrication facility of its kind in Australia at 120,000 square metres. Roughly a quarter of the facility is dedicated to the fabrication, assembly and commissioning of smart modularised structures up to 4,000 square metres and 18 metres high under a single roof. It couldnt be in a better location, says Civmec CEO Pat Tallon. We can do pretty much anything that any customer can throw at us, and we can do it very efficiently and very quickly.
According to Tallon, all of Civmecs sites, spread from
Western Australia to New South Wales, Queensland and the Northern Territories, were chosen for optimum access to ship, road and rail logistics. In its first four years, Civmec targeted the booming mining and offshore oil and gas (O&G) sectors. Despite recent falls in commodity prices, which have hit Australias iron ore, coal and hydrocarbons sectors particularly
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Civmec Henderson
hard, the solid reputation Civmec has gained with the oil industry, such as providing the subsea manifold for Apaches Coniston project, have ensured a healthy continuing order book.
The contracts are smaller than they were before, but there is still a requirement for innovative expertise and smaller jobs require just as much project management input as
the larger ones, says Tallon. Its a similar story in mining. Low
prices mean that the majors are typically working their plants to their nameplate capacity and beyond as volume takes the place of margin. The emphasis of the iron ore market has shifted to some extent from China to fast growing markets including India and developing African and Asian economies.
CIVMEC
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Holcim is one of the worlds leading construction materials companies, delivering
cement, aggregates and concrete in over 70 countries. With strength, performance and
passion we have been supporting Australias construction industry for the past 100 years.
Previously known as Readymix in Australia our products have built some of our countrys
most iconic landmarks from major infrastructure, civil and mining projects right through
to residential. Our 3,000 people located at 300 sites help us deliver. With strength,
performance and passion.
www.holcim.com.au | ph (02) 9412 6600
Building with strength, performance and passion.
Strength. Performance. Passion.
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However there is still a significant level of confidence among companies like Rio Tinto, which has partnered with Civmec on important projects and the huge Hancock Prospectings Roy Hill development in the Pilbara, where Civmec was called in when an overseas fabrication contractor failed to deliver. A large package of work was involved, including three structural steel modules up to 160 tonnes, platework, conveyors, extensive cabling, electrical switchrooms and up to 620 Civmec personnel to
deliver the job on a tight nine-month schedule.
We are happy with our performance at Roy Hill, because it proved we can deliver technically and commercially on a job like this, says Tallon.
A TALE OF D IVERS IF ICATIONNevertheless the downturn is a fact, with Tallon explaining the importance of planning from the outset to diversify from year five onwards and to widen the
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Holcim is one of the worlds leading construction materials companies, delivering
cement, aggregates and concrete in over 70 countries. With strength, performance and
passion we have been supporting Australias construction industry for the past 100 years.
Previously known as Readymix in Australia our products have built some of our countrys
most iconic landmarks from major infrastructure, civil and mining projects right through
to residential. Our 3,000 people located at 300 sites help us deliver. With strength,
performance and passion.
www.holcim.com.au | ph (02) 9412 6600
Building with strength, performance and passion.
Strength. Performance. Passion.
Products and services Holcim operates right across the Australia supplying construction materials from a network of more than 200 concrete plants, 900 mixer trucks, 60 quarries, 16 Humes precast manufacturing plants, and mobile and on-site contracting facilities.
We offer an extensive array of premix products designed to achieve specific properties based on their application, transport and construction requirements. Mobile concrete batching and on-site operations service major projects and remote rural communities. Holcim provides an extensive range of technical and testing services backed by laboratory facilities in all major locations.
The quarry products available from our operations throughout Australia including rail ballast, aggregates, gravels, road pavement materials, and manufactured and natural sands.
Our Humes business is Australias longest serving precast concrete manufacturer and specialises in providing engineered precast and pre-stressed concrete.
For more information visit us at: www.holcim.com.au
SUPPLIER PROFILEHOLCIM
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focus from O&G and mining to infrastructure and defence. The Perth waterfront used to be an under-utilized asset, but now WAs capital city is finally making the most from it with the $2.6 billion Elizabeth Quay Project, which covers nearly ten hectares of prime riverfront land between Barrack and William streets in the heart of the city. The project creates a magnificent precinct featuring a newly dug 2.7 hectare inlet surrounded by a split level promenade, shops, cafs, restaurants and other exciting entertainment venues. Civmec
secured a major package of work on Elizabeth Quay in July 2014, laying down a marker that it had arrived in the infrastructure space.
The job initially involved the supply of precast marine fascia panels, a very visible, architectural part of the development involving dramatic curved shapes around the whole perimeter. This led to the award of an iconic steel structure, the two architectural arches supporting a pedestrian bridge. Not many people could have delivered the level of quality they needed, Tallon says.
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Construction work at Elizabeth Quay
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Moving from the heart of Perth to the gateway of Perth Airport, Civmec has recently undertaken important parts of the road development around the airport. It has also delivered significant fabrication work at the new Virgin Australia terminal, a world-class facility and the most significant project in Perth Airports current $1 billion redevelopment.
These high-profile jobs helped Civmec to secure another contract that will put it very much in the spotlight. In March 2015, Civmec was awarded the contract to deliver the steelwork that is part of the construction of the $1.1 billion Perth Stadium, due to open in 2018. The contract involves the fabrication, surface treatment and installation of over 4,500T of
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Perth Airport Project
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structural steelwork that makes up the stadium superstructure. In June 2015, Civmec was also awarded a further contract on the Perth Stadium to part supply and install precast elements including seating platforms and step units.
The stadium contract is the latest in a series of projects where Civmec is taking a major role in the development of new infrastructure for Perth, says Tallon.
WE CAN DO PRETTY MUCH ANYTHING THAT ANY CUSTOMER CAN THROW AT US, AND WE CAN DO IT VERY EFFICIENTLY AND VERY QUICKLY. Pat Tallon, CEO
Perth Stadium Project team reviewing the project schedule
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first full EPCC (Engineering, Procurement, Construction and Commissioning) contract, on the expansion of BHP Billitons Jimblebar iron ore mine in the Pilbara. The $145 million contract involves the installation of a new primary crusher and additional conveying capacity which will employ approximately 270 personnel at its peak.
We secured this job on the back
SUPPORTING NATIONAL SECUR IT YAll this demonstrates how successfully Pat Tallon and Jim Fitzgerald have led the company from a startup in 2009, through its listing on the Singapore Stock Exchange in 2012, to what is fast becoming a dominating position in the Australian civil contracting market. In a joint venture with Sedgman, Civmec secured its
Civmec employees conducting quality checks in the Henderson workshop
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Steel Grating FRP GratingCivil DrainageBalltube Industrial Handrail
Galintel Steel LintelsGalserv Hot-dip
GalvanisingMastermesh Perforated
& Expanded MetalFastClamp Modular Guardrail Fittings
NEW
NEPEAN Building & Infrastructure, a division of NEPEAN is the proud home of Australias leading brands Weldlok, Galintel & Galserv servicing the Industrial, Civil, Mining, Building & Construction markets. With two major manufacturing plants supported by two hot-dip galvanising facilities and a diversified range of products, NB&I is the most reliable and flexible metal products manufacturer in the industry.
Weldlokwww.weldlok.com.au
Galintelwww.galintel.com.au
Galservwww.galserv.com.au
of delivering to clients through the EPCM process, he explains. It puts us into a different space: under EPCM, the client hired an engineer to manage the project, then the engineer hired the contractors. Under EPCC the client specifies what they wants and we come in, take over the design, liability and the risk and build the plant at a fixed, lump-sum price. Its better for the client because it delivers cost savings by cutting out the engineer in the middle.
Civmecs expansion across Australia, as well as its positioning on the SGX, will place it in good stead when it comes to its next planned strategic leap; expansion into the economies of Southeast Asia. Tallon does not propose to rush this move, however for the coming year, he plans to keep the focus firmly on the home market. This is to take advantage of their recent acquisition of the countrys largest privately-owned engineering and shipbuilding company, Forgacs
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along with its purpose-built shipyard at Tomago on the Hunter River, just 160 kilometres to the north of Sydney. The 22.7-hectare site includes 535 metres of river frontage with two ship basins. It is hard to overstress the significance of this move, since it gives Civmec the capability to be involved in defence builds over the coming years.
The Australian government has just announced that it will spend $150 billion over the next decade to include a doubling of its submarine fleet to 24, three additional destroyers, nine new frigates and twelve offshore patrol boats. This acquisition, added to Civmecs own excellent reputation for making durable structures for long-term subsea performance, gives Civmec the opportunity to become deeply involved in the government programmes including submarines. A strong contender to design these vessels is Germanys Thyssen Krupp, working with Siemens for their power plants. It has been suggested that Civmec would be favourite to build the pressure hulls.
We wanted to get into fabrication
and precast on the east coast, says Tallon. There are so many opportunities for these activities particularly in NSW, so we are planning to create a facility that mirrors the Henderson site. It will be a major building block in our growth programme and will make up for the shortfall in mining and O&G contracts.
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Submarine hull section unveiled at Civmec Henderson
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DOING R IGHT BY THE PEOPLEWhile diversification and geographical expansion when the time is right remain strategic goals, Tallon zealously guards his companys founding principles, which put people first. One of his mantras is hire for attitude, not skills, a philosophy that plays well in Australias journey to a fairer
society. If a potential employee shows commitment and positivity, any lack of skills can be rectified. We were all apprentices once, says Tallon.
In April 2014, Civmec was accredited as a Registered Training Organisation (RTO). The training facility at Henderson, as well as managing apprenticeship and graduate programmes for
James Finbarr Fitzgerald Executive Chairman
Patrick John Tallon Chief Executive Officer
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the society as a whole.Last year the company got
together with the David Liddiard Group (DLG) to create a joint venture subsidiary that will principally engage in securing and providing construction and engineering services with indigenous participation, for projects within the Australian defence sector.
Civmec DLG takes this
employees, offers free skills training to indigenous groups.
Its not so much, Tallon says, that Civmec and all its Australian clients have a statutory requirement to employ indigenous personnel and subcontractors, as this is something the company tries to do as a matter of principle. Its that a diverse and non-discriminatory workforce helps to advance the right development of
Patrick John Tallon Chief Executive Officer
Kevin James Deery Chief Operating Officer
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CIVMEC
engagement one step further, says Tallon. DLG was a company that wanted to develop its people. So we came together to combine our understanding and experience in both industry capability and indigenous participation to ensure that each project is able to demonstrate authentic engagement with local Indigenous communities. We aim to upskill the local workforce, ensuring a sustainable
economic benefit wherever we deliver projects.
As Tallon points out, in the defence sector theres really only one customer. Work must be able to meet very exacting standards in quality, execution and capacity but the government is more committed to indigenous sourcing, and the new entity will be well placed to win defence work. As a further step towards positive
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View of the Yandi project where Civmec delivered site civil works, fabrication, modularisation and structural mechanical and piping installation services
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w w w. c i v m e c . c o m . a u 7 1The team at Nammuldi after the successful installation of the train loadout bin
WE GOT THE EPC BHP JIMBLEBAR CONTRACT ON THE BACK OF DELIVERING TO CLIENTS THROUGH EPCM. IT PUTS US INTO A DIFFERENT SPACE. Pat Tallon, CEO
View of the Yandi project where Civmec delivered site civil works, fabrication, modularisation and structural mechanical and piping installation services
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he says. We are very aware that many employees spend long periods away from their families in remote areas, so we try to involve families as much as we can. We send out progress reports and other materials to the families to keep
community involvement, DLG contracts will incorporate long-term maintenance agreements so that the communities will benefit for many years post-execution.
We are focused as a company on doing the right thing socially,
Civmec made two donations to Dreamfit during FY2015 from savings attributed to the achievement of specific safety performance targets by our employees
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them updated and well always help if someone needs to come home in an emergency.
Environmentally, we aim to use renewable energy sources wherever possible, utilise sustainable waste management and endeavor to leave a site in as good or an even better condition than we found it.
Company Information
I N D U S T RYConstruction, Engineering and Modularisation
H E A D Q U A RT E R S
Henderson, WA - Australia
E S TA B L I S H E D
2009
E M P L O Y E S S
1500 approx
R E V E N U E
$499 Million (SGD)
CIVMEC
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Written by: Mateo Rafael Tablado
Produced by: Taybele Piven
Interviewee: Alberto Reyes, Vice-president to Latin America for Coeur Mining
SHINING LIKE GOLD AND SILVER New ore discoveries, skills, and resources upgrades are key factors to Coeur Minings successful Latin America operations
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Written by: Mateo Rafael Tablado
Produced by: Taybele Piven
Interviewee: Alberto Reyes, Vice-president to Latin America for Coeur Mining
SHINING LIKE GOLD AND SILVER
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COEUR MINING L AT I N A M E R I C A
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Coeur Mining is the largest silver producer based in the United States, as well as an important gold producer. It has two important operations in Latin America: Palmarejo in Mexico and San Bartolom in Bolivia. Operations in Mexico produce both gold and silver, while the San Bartolom mine only produces silver; the latter is located in Cerro Rico and considered one of the richest silver producers in the world, in operation since the 16th century.
Around four million
oz are expected to be
produced in Palmarejo
by the end of 2016
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Coeur Minings operations in Latin America are lead by Alberto Reyes, a Canadian of Latin American descent and mining expert who has worked for different companies in operations around the world. Australia, South Africa, Ghana, Brazil and Southeast Asia are just some of the countries where Reyes has worked, increasing his knowledge within the trade and earning certifications. Reyes graduated from the Laurentian University in Ontario as a mining
Key People
Alberto ReyesVice-president to Latin America for Coeur Mining
Coeur Minings operations in Latin America are lead by Alberto Reyes, a Canadian of Latin American descent and mining expert who has worked for different companies in operations around the world. Australia, South Africa, Ghana, Brazil and Southeast Asia are just some of the countries where Reyes has worked, increasing his knowledge within the trade and earning certifications. Reyes graduated from the Laurentian University in Ontario (Canada) as a mining engineer, where he also obtained the Hard Rock Underground Common Core certificate. He has worked for Newcrest Mining (obtaining his Lean Six Sigma certification during this tenure), GoldFields LTD, Luna Gold and other companies. He obtained his Chartered Professional engineer certificate as first-class mine manager at the Australian Institute of Mining and Metallurgy.
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Coeur Minings investments for each operation include -in addition to moving and
installing equipment- important training for its workers
engineer, where he also obtained the Hard Rock Underground Common Core certificate. He has worked for Newcrest Mining (obtaining his Lean Six Sigma certification during this tenure), GoldFields LTD, Luna Gold and other companies. He obtained his Chartered Professional engineer certificate as first-class mine manager at the Australian Institute of Mining and Metallurgy. His current role is Coeur Minings vice president for Latin America operations.
The university was able to sponsor me, so I could get the Common Core from the beginning, which is required in Ontario to work
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Palmarejo mine in Chihuahua, in northern Mexico, open pit and underground
operations producing gold and silver
in underground operations. It was important to obtain this certification, since it provided me of the basics and highest standards in mine safety, said Reyes.
Palmarejo: above original expectationsThe Palmarejo mine is located in the State of Chihuahua in northern Mexico. Coeur Mining began work in this mine around 2009, both for open pit and underground mining operations. Later explorations found deposits near Independencia and Guadalupe; the first one became a viable project after an acquisition from Paramount Mining in April 2015. These newfound
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We have been successful in deploying a leadership culture within our operations
Alberto Reyes, Vice-president to Latin America for Coeur Mining
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COEUR MINING
We have been successful in deploying a leadership culture within our operations
Alberto Reyes, Vice-president to Latin America for Coeur Mining
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deposits add high grade value and reserves to Palmarejo operation.
Infrastructure for the Guadalupe underground mine was deployed and set up to ramp up operations, achieving commercial production in record time. These operations have proved themselves to have great potential to offer high grade material, especially in comparison with previous open pit efforts.
One of the challenges brought by this discovery was to achieve full production. In addition, the staff that had previously worked in open pits had to adapt their skills to underground operations with different equipment and machinery.
The staff completed the transition, and this production success is a result of the transition itself, said Reyes.
The transition towards underground operations was gradual but safe. Today, workers process between 2,500 and 3,000 tonnes per day, with the aim of increasing to 4,000 or 4,500 tonnes per day. The current reserves come in at 9.1 million tonnes, generating 44.9 million ounces of silver and 690,000 ounces of gold.
San Bartolom: millennial legacy in BoliviaCoeur Mining began operations in
The Ambassadors
program detects workers
with leadership skills,
providing them special
and extensive training
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COEUR MINING
San Bartolom in 2008; it has a stable production, having produced up to 7.5 million ounces in a year, setting yearly average production at 6 million ounces. The mills in San Bartolom receive around 2.3 million tonnes, and once filtered, process about 1.6 tonnes. This mines production cycle is estimated to end between 2019 and 2020.
Currently, Cerro Rico has an 8.2 million tonnes reserve to be processed, which equals about four years of production.
This doesnt mean that we are not looking for other areas to work at, but our new challenge is how to increase our reserves, said the executive.
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Adaptability within the markets fluctuationsOne of the most important achievements for Coeur Mining has been its adaptability during the recent downturn in the stock market. This environment enabled cost revisions, successfully modifying the operations with no need of extreme measures such as large layoffs.
Everyone has learned how to work in a more efficient and safe way. This has not only been transmitted within the operation, but throughout communities around us, said Reyes.
Coeur Mining prefers
local hires for their Latin
American operations
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Key People
Tony C. Astorga Director of Supply Chain Management at Coeur Mining
Tony C. Astorga joined Coeur in June 2012 and now serves as the Director Supply Chain. Before joining Coeur, he served as the Contracts Manager for Barrick Gold of North America, Inc. working with various teams to standardize processes, improve contractor safety, and support CAPEX and OPEX projects throughout the region. Having originally working in various operational and maintenance support roles, Tonys supply chain career has allowed him to serve various managerial roles (in Materials, Purchasing, Commodities, Service, Contracts and Supply Chain) working for companies such as ASARCO, Phelps Dodge (now Freeport-McMoran), Rio Tinto, Hecla, Barrick and now Coeur Mining Inc. Tony is a member of the Institute of Supply Chain (ISM) and holds a Bachelors and a Masters degree in Business Administration.
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TechnologyDue to its surface, operations at San Bartolom do not require a full array of high-tech machinery to extract minerals; still, the processing area is 80 to 90 percent automated. This innovative system has detectors for moisture, metal concentration, cyanide and pH levels, and is also enabled to monitor energy consumption. This data tracks any trends that indicate any adjustments and other measures that need to be taken.
For exploration tasks, technology contributes to be the most efficient processes of underground exploration, using laser beams, temperature sensors, and gas meters to send data to the surface.
SuppliersCoeur Minings key suppliers include vendors of replacement parts, lubricants and fuel, elements that guarantee a proper use of equipment. Other key supplies include explosives for detonations, and catering services.
The companys vendors have been supportive during the decline in metals prices, open to renegotiate and cooperate with Couer Mining to, examine areas where savings would not impede in obtaining the same results.
We work with suppliers able to share our same values, and they must adhere to the responsibilities of our company, said Reyes.
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Organizational cultureCoeur Mining invests in resources that help create the best possible employees with essential skills. A version of the BENG Common Core is currently taught to underground workers at Palmarejo, a significant investment resulting in a four-week intensive training course.
Other incentives include scholarships for the companys workers and their children.
Ambassadors: the leadership programCoeur Minings Ambassadors program detects workers with leadership traits. Once identified, these leaders join the Ambassadors program and undergo training in Chicago, where they are taught an overview of the companys financial aspects, mining and engineering operations, and other skills by hired specialists. These ambassadors are then in charge of dispersing this message to the operations personnel, both verbally and by example in their work.
We find those individuals with leadership traits, able to communicate their ideas, who can impact positively the rest of the workforce. These professionals display their passion while carrying out their regular duties, this is the reason why everyone else follows them. They are the current leaders at Coeur, said Reyes, who participates in this program as an instructor.
L AT I N A M E R I C ACOEUR MINING
Coeur Minings staff has
completed excellent
transitions from open
pit mining to
underground operations
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RSC: supporting the immediate environmentThe communities surrounding Coeur Minings operations not only benefit from the companys service requirements, but also from the sustainable development programs carried out by the company.
Coeur Manquiri, the operation in San Bartolom, has developed different programs along with the neighboring community, such as a trout farm, which has already benefitted members of the community. Additionally, the company has built and supports schools in the area, and has also helped locals in building greenhouses and helping into the creation of different means to achieve sustainability within the community not just during the mines productive cycle but also in the future.
ForecastsCoeur Minings current operations in Latin America look promising. Between 3.8 and 4.3 million ounces are expected to be obtained from the Palmarejo mines by the end of this year. These numbers are based on findings at Guadalupe and Independencia, taking into consideration previous production and planned machinery deployment expected to produce by late 2016. The goal for the mid-term is finding a third source at this site and getting it into production before 2020.
Coeur Minings
operations in Latin
American are set in
Palmarejo (Mexico) and
San Bartolom (Bolivia)
Exploration activities
in Palmarejo led to ore
findings in Guadalupe
and Independencia
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L AT I N A M E R I C A
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Conor Dullaghan, [email protected]+1-740-286-6457 x713
Inquiries:
www.elemetal.com/refining
R E F I N I N G T H E F U T U R E
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Coeur reports several areas near Guadalupe with new deposits, known as Los Bancos, La Nacin, La Bavisa and Las nimas, which promise to become productive.
All these places are exploration targets that have provided promising preliminary data. We want to keep expanding them, so that they become important resources and reserves, the executive said.
Company Information N A M E
Coeur Mining
I N D U S T RY
Latin America
H E A D Q U A RT E R S
Chicago,
Illinois,
EE.UU.
F O U N D E D
1928
E M P L O Y E E S
1,200 (LATAM only)
R E V E N U E
US $280 million (LATAM
only)
W E B S I T E
www.coeur.com
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Written by: Mateo Rafael Tablado
Produced by: Taybele Piven
Interveiwee: Ing. Arnaud Chapuis, Gerente General en Soletanche Bachy Chile
SUCCESSFUL works from undergroundA long history of innovation and contribution to large projects in the Andean country comes to fruition for Soletanche Bachy Chile
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Written by: Mateo Rafael Tablado
Produced by: Taybele Piven
Interveiwee: Ing. Arnaud Chapuis, Gerente General en Soletanche Bachy Chile
SUCCESSFUL works from undergroundA long history of innovation and contribution to large projects in the Andean country comes to fruition for Soletanche Bachy Chile
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SOLETANCHE BACHY CHILE L AT I N A M E R I C A
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Soletanche Bachy is the result of a merger that took place in 1997 between two French companies: Soletanche, founded in 1931, and Bachy, created in 1926. 2016 marked 50 years that the company which focuses on mining and construction has been present in Chile. In 2007, Soletanche Bachy became part of the Vinci SA group of companies, whose business units are also engaged in various specialties in the fields of construction, mining, infrastructure, tunnels, geotechnics, as well as products and related activities.
Soletanche Bachy is not the only company from the Vinci group that has established itself in Chile. Due to its 50-year presence in the country, Soletanche Bachy provides an important support for other group companies, such as Bessac, Freyssinet, Vinci Airport and Vinci Construction Grand Projets, among others, in its territory.
Soletanche Bachy Chile has been a pioneer in introducing to the country most of the technology related to soil and geotechnical engineering in general. Applied knowledge, as well as the machinery and equipment at the disposal of Soletanche Bachy, are for more than just building foundations; they are also used by other sectors, such as construction and energy. For example, the mining industry relies heavily on the company for the development of tunnels and other underground infrastructure.
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SOLETANCHE BACHY CHILE L AT I N A M E R I C A
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Some notable projects that the company has recently participated in include:
Angostura Hydroelectric in 2012: Chiles largest and deepest diaphragm wall, with a surface of 54,000 m2 (33.55 miles2) and a depth of 70 m (230 feet).
Pascua Lama Chile-Argentina mining project developed by Barrick Gold, currently detained: this site boasts the worlds tallest stem wall with a height of over 4,000m
(2.5 miles). ALMA Observatory in San Pedro de Atacama: building the foundations of the observatorys antennas, at an altitude of 5,000 m (over 3 miles).
El Teniente Mine, managed by CODELCO and awarded in conjunction with the Vinci Construction of Major Projects division: construction of access tunnels began in
2011 with an investment of US $400 million.
Vinci is one of the leading construction and concession groups worldwide and has several subsidiaries in the country. We are its oldest subsidiary in Chile, and we support other Vinci subsidiaries in the country, said Arnaud Chapuis, General Manager of Soletanche Bachy Chile.
Key People
Arnaud ChapuisCEO for Soletanche Bachy Chile
Chapuis studied civil engineering at the Ecole Centrale de Paris and Polytechnic University of Madrid. He has been at Bachy Soletanche since 1996 and first worked in Chile from 1997 to 2000. From 2000 to 2011, Chapuis worked at BESSAC, another Soletanche Bachy subsidiary group. Throughout his career, he is noted for handling all the special technology that Soletanche Bachy disposes of, as well as TBMs (tunnel boring machines or moles) and micro-TBMs used by BESSAC. He has been General Manager of Soletanche Bachy Chile since 2011.
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Chapuis studied civil engineering at the Ecole Centrale de Paris and Polytechnic University of Madrid. He has been at Bachy Soletanche since 1996 and first worked in Chile from 1997 to 2000. From 2000 to 2011, Chapuis worked at BESSAC, another Soletanche Bachy subsidiary group. Throughout his career, he has been noted for handling all the special technology that Soletanche Bachy uses, including tunnel boring machines. He has been General Manager of Soletanche Bachy Chile since 2011.
The foundation of great works
Soletanche Bachys broad portfolio of services fall into five major categories:
SOLETANCHE BACHY CHILE
Ralco Hydroelectric
Plant, curtain wall
injections... successfully
creating harmony
between concrete
and nature
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Special foundations and geotechnical work Soil improvement Drilling and exploration drilling Tunnels and underground works Consulting and geotechnical engineering
Soletanche Bachy Chile is known for its geotechnical activities such as the construction of diaphragm walls, ground anchors, rock injection systems, construction of deep foundation building systems and tunnel construction using the pipe jacking method.
Advantages from technology
One factor distinguishing Soletanche Bachy from the competition is the technology to which
El Teniente Mine,
managed by CODELCO ...
Soletanche Bachy has the
technology and equipment
needed to overcome such
challenging soil
L AT I N A M E R I C ASOLETANCHE BACHY CHILE
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SOLETANCHE BACHY CHILE
9 8 M a y 2 0 1 6
Our business does not become successful if it only fulfills our investors expectations:
true success comes from sharing beyond the company Arnaud Chapuis, CEO for Soletanche Bachy Chile
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L AT I N A M E R I C ASOLETANCHE BACHY CHILE
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Our business does not become successful if it only fulfills our investors expectations:
true success comes from sharing beyond the company Arnaud Chapuis, CEO for Soletanche Bachy Chile
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TBMs and micro-TBMs as well as exclusively used proprietary technology ... These are
some of the advantages of Soletanche Bachy and its subsidiaries
the company has access. Its cutting-edge technology stems from its parent company and its French subsidiary dedicated to the manufacture of specialized geotechnical equipment. Through its sister company, Bessac, proprietary technology and know-how is provided in systems of mechanized excavation, pipe jacking and tunnel boring machines (TBMs) and micro-TBMs.
They have developed machinery and systems such as the PlintoDrill, used for dam foundations, and hydrofracturing systems in Chile. The parent company has also developed innovative equipment such as the Baya, a hydraulic power shovel used for constructing diaphragm walls for deep excavation in difficult soil conditions.
SOLETANCHE BACHY CHILE
1 0 0 M a y 2 0 1 6
Chile-Argentina Pasca
Lama mining project
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The company has automated monitoring and control of injection equipment, highlighting the advantages offered by its Spice system.
Historically speaking, we have been pioneers in the development and introduction of geotechnical technology in Chile, explained Chapuis.
Global support and excellent regional coordination
Bachy Soletanche is divided into seven regional offices positioned worldwide. This setup allows for efficient coordination in terms of staffing, availability of machinery, knowledge, and
Geotechnical works, tunneling, drilling and exploration, consulting and engineering ...
Soletanche Bachy lays the groundwork for well-done projects
SOLETANCHE BACHY CHILE L AT I N A M E R I C A
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Marina Arauco Mall in Via del Mar, a successful turnkey excavation project
SOLETANCHE BACHY CHILE
techniques. Subsidiaries in each specific area share their resources and knowledge. Moreover, the French parent company provides financial and technological support.
This parent company houses a committee of experts that provides technical advice as well as a laboratory that helps local subsidiaries determine the materials needed for each project.
We have close coordination in terms of personnel, equipment, and level of engineering between the various Latin American subsidiaries, said the executive.
Casa Costanera
shopping mall in
Vitacura... A buildings
lasting safety begins with
well-laid foundations
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Meeting global supplier standards
Soletanche Bachy specializes in providing geotechnical engineering services worldwide. They focus on building materials, specifically on the different concretes needed for any type of soil and project.
The company has worked diligently to acquire these suppliers. While Chile barely develops standards or norms regarding material grades for certain projects, Soletanche Bachy ensures that their suppliers meet the global standards also met by the company itself.
Soletanche Bachy is active in the mining industry and works with Chilean suppliers of mining drilling equipment that can achieve depths of up to 1,500 m (one mile).
We develop high efficiency products in-house, and we analyze specifications and work closely with Chilean concrete producers to meet these specifications, said Chapuis.
Versatility and safety in the workforce
The current development of Chiles mining and construction activities requires Soletanche Bachy to have partners that are able to work in various fields, able to specialize in operating
SOLETANCHE BACHY CHILE
We strive to maintain a
sustainable
business, on top of our works
quality and safety conditions Arnaud Chapuis, CEO for
Soletanche Bachy Chile
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We give priority to people who share the companys safety and quality standards,
and transparency and teamwork ethic
SOLETANCHE BACHY CHILE
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L AT I N A M E R I C A
the companys exclusive machinery and have the flexibility to transition between mining, construction and soil remediation.
Beyond the companys ability to easily provide their staff with technical training, recruiting individuals who are able to share in the companys commitment to safety policies, high quality standards, transparency and teamwork is prioritized.
Soletanche Bachy regards safety training as the most important requirement, since it is what distinguishes the Vinci group from the rest. The same safety standards are shared by the mining clients whom the company usually works with: BHP Billiton, Barrick Gold, state-owned CODELCO and Anglo American, among others.
Other training programs are developed in conjunction with Vincis parent company in Paris, in addition to occasional exchanges of business professionals between this office and other regional and global subsidiaries.
Nos diferenciamos por ser una empresa de vanguardia con ventaja tecnolgica que ofrece proyectos integrales a nuestros clientes Arnaud Chapuis, Gerente General de Soletanche Bachy Chile
SOLETANCHE BACHY CHILE
Soletanche Bachy and the
Vinci groups overall global
support involves technology
and strategic knowledge
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SOLETANCHE BACHY CHILE
MAYOR SEGURIDAD ENPERFORACIN DE SONDAJES
Los nuevos equipos SMART DIAMEC equipados con manipulador de barras automtico, establecen un nuevo estndar en la perforacin de sondajes diamantinos.
Environment and CSR, beginning in-house
Soletanche Bachy employees can benefit from purchasing Vinci company shares at an employee rate. The company also provides funding to some for ongoing studies and educational pursuits.
In respect to the environment, the company looks to use increasingly energy efficient equipment to ensure that fuel is not wasted. Many of its regular operations for the mining sector involve environmental mitigation work such as leakage prevention.
Soletanche Bachys,
as well as the mining
companies with which
it works with, utmost
priority is worker
safety training
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Soletanche Bachy has established relationships with communities who work locally as well as remotely (for operations performed in northern Chile). For example, the warehouse and workshop in Santiago, the capital, are located near communities and schools. As such, cultural workshops are created and local festivities are celebrated together.
Maintaining leadership
Bachy Soletanche adapts its efforts according to the current Chilean market. Successful operations in 2016 solidify the status the company has earned in the country. The work quality it has always been known for as well as prompt delivery that complies with worker and customer safety regulations is continually ensured.
Company Information N A M E
Soletanche Bachy Chile
I N D U S T RY
Mining, construction,
engineering, geotechnics,
foundations, digging,
tunnels
H E A D Q U A RT E R S
Santiago,
Capital,
Chile
F O U N D E D
1966 in Chile
E M P L O Y E E S
450 in Chile
W E B S I T E
www.soletanchebachy.cl
SOLETANCHE BACHY CHILE